Nine West Said to Set Rate on $470 Million Buyout Term Loan
Nine West Holdings Inc., which will become a new company after completion of Jones Group Inc. (JNY)’s sale to private-equity firm Sycamore Partners LLC, set the rate on a $470 million term loan backing the buyout, according to a person with knowledge of the transaction.
The 5 1/2-year loan may pay interest at 3.25 percentage points to 3.5 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, said the person, who asked not to be identified without authorization to speak publicly. The debt will be offered to lenders at 99.5 cents on the dollar.
Sycamore is buying Jones Group in a deal valued at $1.2 billion, or $2.2 billion including debt, New York-based Jones said in a Dec. 19 statement. The New York-based private equity firm focuses on retail investments, including last year’s buyout of Hot Topic Inc.
Morgan Stanley, Jefferies Group LLC and MCS Capital Markets are arranging the financing and request commitments from lenders on Feb. 27, the person said.
Lenders will receive one-year of soft-call protection at 101 cents on the dollar, the person said, meaning Nine West would have to pay a one cent premium to reprice the deal in its first year.
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